Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Diversity and Inclusion
• Environmental Sustainability (Gasification, Carbon Capture, Hydrogen for Mobility)

Environmental Achievements

• Announced "Third by '30" carbon intensity reduction goal.
• NEOM project announced to supply carbon-free hydrogen, eliminating three million tons per year of CO2 emissions.

Social Achievements

• 63% improvement in employee lost-time injury rate since 2014.
• 31% improvement in employee recordable injury rate since 2014.
• Announced goals to achieve at least 28% female representation globally and at least 20% minority representation in the U.S. in professional and managerial roles by 2025.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic negatively impacted sales by approximately 4%, primarily due to lower volumes in the merchant business.
• COVID-19 negatively impacted fiscal year 2020 EPS by approximately $0.60-$0.65 per share.
• A long-term on-site customer in Asia delayed restarting their plant after planned maintenance.

Mitigation Strategies

• Implemented health and safety policies to keep employees, contractors, customers, and communities safe.
• Non-essential employees worked from home.
• Focus on pricing discipline in the merchant business.
• On-site business model continued to generate stable cash flow.
• Negotiating with the delayed Asian customer regarding contract terms.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes governing GHG emissions.

Opportunities

• Gasification, carbon capture technologies, and hydrogen for mobility and energy transition.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Carbon-free hydrogen, gasification technology, carbon capture solutions.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Greenhouse Gas Emissions Reduction

Environmental Achievements

• 4% improvement in CO2 emissions intensity in 2021
• 14% increase in customer avoided emissions in 2021
• 0.1% improvement in energy use intensity in 2021
• 8.6% improvement in GHG emissions intensity in 2021
• 15.6% improvement in water use intensity in 2021

Social Achievements

• Not disclosed

Governance Achievements

• Board of Directors oversight of environmental and safety performance, reviewed quarterly
• Corporate Governance and Nominating Committee monitors sustainability issues

Climate Goals & Targets

Environmental Challenges

• Potential increase in operating costs due to increased GHG emission regulations
• Physical risks from severe weather events

Mitigation Strategies

• Regional environmental experts identify and assess policy and legal risks
• Physical risks addressed through plant design and engineering
• Business Continuity Planning process for severe weather events
• Risk communication across regions and to the Sustainability Leadership Council and Board of Directors

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Increased GHG emission regulations

Opportunities

• Growth opportunities related to climate change mitigation and adaptation

Reporting Standards

Frameworks Used: TCFD, GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Gasification projects, carbon capture projects, low- and zero-carbon hydrogen projects

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Clean Hydrogen
• Sustainability
• Safety
• Diversity & Inclusion

Environmental Achievements

• Achieved a 63 percent improvement in the employee lost-time injury rate and a 50 percent improvement in the employee recordable injury rate since fiscal 2014.
• Completed financial close on the world’s largest green hydrogen-based ammonia production facility in Saudi Arabia.
• Moving forward to build, own, and operate a carbon capture and carbon dioxide treatment facility at its hydrogen production plant in Rotterdam, the Netherlands.
• Announced a joint venture to build a mega-scale green hydrogen facility in Wilbarger County, Texas.

Social Achievements

• Delivered strong adjusted earnings per share of $11.51, an increase of 12 percent compared to last year.
• Consistently increased its dividend for 41 consecutive years.
• Built a diverse and inclusive culture where 23,000 people can feel they belong and matter.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Economic and geopolitical headwinds around the world.
• Inflation, higher maintenance activities, and higher costs to support its long-term strategy.
• Risks associated with having extensive international operations, including political risks, risks associated with unanticipated government actions and risks of investing in developing markets.
• Project delays, scope changes, cost escalations, contract terminations, customer cancellations, or postponement of projects and sales.
• Risks relating to cybersecurity incidents, including risks from the interruption, failure or compromise of its information systems or those of its business partners or service providers.
• Catastrophic events, such as natural disasters and extreme weather events, pandemics and other public health crises, acts of war, or terrorism.
• Costs and outcomes of legal or regulatory proceedings and investigations.
• Changes to federal, state, and local employee health and safety regulations, and legislative, regulatory, or societal responses to safety incidents.

Mitigation Strategies

• Pricing discipline in its merchant business and improved on-site volumes.
• Cost improvement in certain areas of its organization as a result of strategic business actions.
• Successfully secured capital to fund low- and zero-carbon hydrogen growth projects.
• Cost pass-through contracts with customers and price increases to mitigate adverse energy price impacts.
• Established policies and procedures to help protect the security and privacy of information.
• Established counterparty credit guidelines and generally enters into transactions with financial institutions of investment grade or better.
• Maintains workers' compensation insurance to address the risk of incurring material liabilities for injuries or deaths.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Significant opportunities for hydrogen for mobility and energy transition, carbon capture technologies, and gasification.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Clean hydrogen
• Blue hydrogen
• Green hydrogen
• Blue ammonia
• Green ammonia

Awards & Recognition

• Not disclosed